6 Ways to Save Money on Home Insurance

Looking out of home's window

If it’s time for you to renew or buy home insurance, here are the main ways you can save money on your insurance premiums:

Shop Around

First and foremost it really does pay to shop around and get a number of quotes. When comparing quotes, be sure you are making a fair comparison of coverage, amount of deductibles, limitations and exclusions that may apply.

Four Main Types of Home Insurance

To help you compare, keep in mind that there are four main types of home insurance policies:

  1. A comprehensive policy covers both the building and its contents for risks that are not specifically excluded in the policy.
  2. A broad policy provides “all risks” coverage on the building, plus “named perils” coverage on its contents.
  3. A named perils policy covers only those perils specifically named or included in the policy, such as fire.
  4. A no-frills policy, which provides barebones coverage for properties that don’t meet normal insurance standards.

6 Ways to Save Money on Home Insurance

1. Increase Your Deductible

Home insurance policies usually have a $500 deductible, which is the amount you have to pay for a claim before your coverage kicks in. But if you are comfortable with increasing your deductible from $500 to $1,000, then you will likely be quoted lower rates.

2. Improve Security

By installing a fire extinguisher, a monitored burglar alarm system or deadbolt locks, you may qualify for lower premiums. So be sure to ask your insurance professional about adding these safety measures to your home.

3. Bundle Your Policies

Consider buying your homeowners and car insurance policies from the same company. Most insurance companies offer home and auto bundle discounts to customers who take multiple policies with them.

4. Ask About Other Discounts

Ask if you qualify for other savings, such as:

  • A loyalty discount (many years with the same insurance company)
  • Discounts for retirees,
  • Non-smokers, or
  • Belonging to recognized organizations.

5. Wait Before Switching

Don’t switch insurance companies midway through the policy term. Wait until renewal time to avoid a possible cancellation penalty.

6. Things Change so Review Your Coverage Annually

Your coverage should accurately reflect your home’s current value and condition, including major improvements or significant purchases. You may have items that appreciate in value, such as artwork or jewellery, which usually require additional coverage. Likewise, items that depreciate in value, such as computers or expensive sporting equipment, may no longer require extra insurance.

More Information

More consumer information on insurance is available online at fsco.gov.on.ca. The Financial Services Commission of Ontario (FSCO) is the agency responsible for regulating insurance in the province.

No Time to Shop Around?

We do the comparison-shopping for you because we represent over 25 of the best insurance companies in Canada. Our insurance experts will find the home insurance you want at the lowest rates possible. For a no-obligation quote, call Mitchell & Whale at 1-800-731-2228 or email us at info@mitchellwhale.com.

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